Legal Issues

When buying a property there are several legal issues that must be handled such as:

The Contract of Sale

The contract of sale is presented to a buyer when an offer is made on a property for sale, and subsequently accepted by the seller. It is important at this stage that buyers seek independent legal advice - a licensed solicitor will be able to advise you on any conditions of the sale and/or take the appropriate steps to include conditions that you want made, for example, you may want to make the sale subject to pest and building inspections.

The REIQ Standard House and Land Contract has been prepared in coherence with the Property Agents and Motor Dealers Act 2000 and in conjunction with the Law Society of Queensland and is commonly used among real estate agents around Queensland. A sample copy of the REIQ Standard House and Land Contract is available for buyers who wish to familiarise themselves with a contract of sale before beginning their real estate transaction.

In the case of a property sold through auction it is important to get a copy of the contract before the property goes to auction. Properties sold 'under the fall of hammer' are unconditional, and therefore definite. A solicitor will be able to advise you on conditions of the contract of sale before you begin bidding on the property. Tip: on the day of the auction, make sure there are no late changes to the contract you were given by checking with the auctioneer.

Conveyancing

Conveyancing is the legal transfer of a property's title from the seller to the buyer. Queenslanders have the choice of employing a solicitor to handle the conveyance or doing the job themselves.

When using a DIY Kit buyers or sellers take on the risks of costly and/or time consuming mistakes such as missing a contract deadline or failing to make appropriate adjustments at settlement.

Experience shows that a high proportion of those people who set out to handle their own conveyancing strike problems in the process. They may end up seeking professional legal advice that can cost as much as, or more, than the original conveyancing charges they sought to avoid.

Using a licensed solicitor often saves time on paperwork such as title searches and stamp duty and can also provide peace of mind when you may be making the largest single financial transaction of your life.

Whether you use a solicitor or decide to do-it-yourself, conveyancing still incurs costs such as searches of the Titles office, certificates of rates, zoning, stamp duty and registration fees. Searches of zoning, and Titles will determine whether the property has any restrictions such as adverse planning, demolition orders, outstanding taxes linked to it, or encumbrances on Title such as easements.

The REIQ strongly recommends that buyers and sellers avoid the risks associated with do-it-yourself conveyancing and use the services of a solicitor in property matters.

The Cost of buying Real Estate

As the buyer of real estate you may incur costs including the sale price of the property itself, stamp duty payable to the State Government, conveyancing costs and other legal fees, building and pest inspection reports, a valuation report, and costs payable to a financial institution. As a buyer who terminates a Contract under the 5-business day cooling off provision, you may have to pay a cost to the seller. The REIQ suggests the following as the main costs of buying real estate -

1.       Price of the Property:

You are able to put in an offer on a property under the advertised price - the real estate agent then presents the offer to the seller and they will either accept or reject the offer. The price that the buyer and seller agree upon is countersigned on the contract of sale.

2.       Transfer (Stamp) Duty and Land Tax:

Stamp duty is a tax imposed on written documents that record or affect certain types of financial or legal transactions.

Stamp duty is chargeable on documents or statements if they are either:

• Signed or executed in Queensland; or

• Signed or executed outside Queensland but relating to property situated in Queensland or to some act, matter or thing to be done in Queensland.

State Government's charge the buyer stamp duty when they purchase property - the percentage scale will vary according to the amount of the sale price and whether or not the buyer intends to live in the property or rent it out to tenants as an investment. Depending on the nature of the transaction, certain concessions and exemptions are available.Your solicitor will obtain the appropriate rate. The buyer pays the solicitor the amount payable who then arranges payment to the Government authority.

 

NEW!! 2006 changes in transfer duty

On 21 October 2005, the Queensland Premier announced increases in Transfer duty rates and changes to the home concession.

From 1 July 2006 , rates of transfer duty for property valued above $500,000 will increase.

However, the threshold for the home concession will increase from $300,000 to $320,000. This means that there will be no increase in transfer duty payable for principal places of residence valued up to $700,000. Additional duty will, however, be payable for purchases of a principal place of residence over $700,000.

Key points are:

• Rates below $500,000 will remain unchanged and in addition the threshold for the principal place of residence concession threshold will increase from $300,000 to $320,000.
   

• The net effect of these changes is that no one purchasing a home below $700,000 will pay more.

Click here for the new Duties schedule.

NEW! Changes to Land tax

As part of the 2005-06 State Budget initiatives, the Deputy Premier, Treasurer and Minister for Sport has announced significant changes to the way land tax is assessed in Queensland. These changes involve:

~ Replacement of the existing land tax rate scale with two separate rate scales
~ one for natural residents
~ one for companies, absentees and trustee

These new scales provide fewer and broader taxable value bands, rate reductions and increased tax free thresholds. The new rate scales also incorporate the existing statutory deduction, exemption thresholds, rebates and the minimum tax payable amount.

Click here for the new Schedules

 

Stamp Duty Calculators

As a service to their clients, the Office of State Revenue has made available Stamp Duty calculators which can be downloaded and installed on your computer.

The calculators include:

Conveyance Duty

Mortgage Duty

Lease Duty

Click here to download these calculators.
 

Alternatively, you may first wish to refer to Buying Real Property in Queensland which address specific provisions under the Act.

For more information about Stamp Duty, go the State Government's website at www.osr.qld.gov.au or phone 07 3227 8733 or 1300 301 342.

Land Tax

The Office of State Revenue (OSR) collects land tax in Queensland and administers the Land Tax Act 1915.

Land tax is levied by the Queensland Government on freehold land owned in Queensland as at midnight on 30 June each year.

For land tax purposes "land" includes vacant land, land that is built upon, building unit plans, group title plans, time shares and home unit companies.

Who is liable to pay?
Land tax is payable by the owner of any interest in freehold land in Queensland if the aggregate value of all land interests exceeds the relevant threshold.

There are various classes of taxpayers including residents (natural persons who ordinarily reside in Australia), absentees (natural persons who do not ordinarily reside in Australia), companies (includes clubs, associations etc.) and trustees (includes trustees of deceased persons' estates).

When is land tax chargeable?
For the 2003-04 financial year in Queensland, land tax is charged only if the total unimproved value of land owned is equal to or exceeds:

for a natural person who ordinarily resides in Australia $275 997
for a company, trustee, club, etc. or a person who does not ordinarily reside in Australia (an "absentee") $170 000

The rate of land tax varies with the aggregate value of taxable land however the maximum tax rate is 1.8 per cent on land owned in excess of $1,500,000.

Select information sheets from the options on the right to view relevant tax rates.

Depending on the use of the land, certain deductions may be available to reduce the taxable value of the unimproved land. Land tax is not payable on land used by the owner solely as their principal place of residence if a deduction has been claimed on the relevant form and allowed.

For further information go to the Office of State Revenue website.

3.       Legal Costs and Searches

The REIQ strongly encourages buyers seek independent legal advice before signing a Contract for Sale. The Queensland State Government's new Property Agents and Motor Dealers Amendment Act 2001 has resulted in the introduction of a raft of new forms that affect both the buyer and the seller.

Issues that need to be understood by the buyer are: the appropriateness of accepting or waiving the 5-business day cooling off period, seeking assistance with understanding the new State Government forms, the Selling Agent's Disclosure to the Buyer Statement (Form 27b) and the REIQ Contract of Sale. The buyer seeking legal advice relating to these forms is recommended.

After a buyer has signed the appropriate forms and the Contract of Sale, they are advised to undertake certain searches - these include a Title search verifying the ownership of the property, a local government building report on the legality of existing structures on the property, a local government search on the zoning of the property indicating any restrictions on the property, and encumbrances on the property easements.

Solicitor's fees are negotiable - it is advisable to compare the fees being charges by a few different solicitors. Good referrals and past experience is valuable when choosing your legal representative. It is possible for a buyer to undertake these activities on their own, however, the REIQ strongly recommends using qualified solicitors for conveyancing. Contact the Queensland Law Society for further details about how to contact a qualified solicitor: www.qls.com.au

4.       Valuation Report

An independent valuation report on a property can be valuable to the buyer to indicate a property's true worth. Sometimes the seller will obtain this for the buyer at his or her own cost. In Queensland, contact the Australian Property Institute on Ph. 07 3832 3139 for the names of licensed valuers.

5.       Pest and Building Inspection Reports

Buyers can make their Contract of Sale conditional on the basis of a satisfactory building and pest inspection report from a licensed professional (see the Building Services Authority website www.bsa.qld.gov.au for more information).

The cost of these can vary but it is now required under Queensland law that the Inspector must be licensed by the Building Services Authority.

6.       Termination of a Contract under the 5-business day cooling-off provision:

If a buyer terminates a Contract of Sale at any time during the stipulated 5-business day period, they will have to pay the seller 0.25% of the property price on the Contract. There is no additional GST payable on this amount.

If the buyer has elected to waive the cooling off period provision they will not incur any cost and consequently cannot terminate a Contract.

Steps involved in Buying Real Estate

The REIQ recommends the following steps when buying property:

1. Find out your borrowing capacity from banks or financial institutions.

2. Decide on a location where you would like to buy.

3. Research property sales history in your chosen area and get information about median prices for the suburb. The REIQ publishes median sale prices for houses and units / townhouses by suburb in Queensland Property and Lifestyle, a consumer research publication available at www.propertylifestyle.com.au.

4. Jump on the Internet - you'll be amazed at the volume of publicly available information on finding and buying property. Some good sites to check out before you start the process include:
   
   >The State Government has a page devoted to property transactions at this address. This page has links to everything from title searches to the First Home Buyer's Grant to Building Codes
   >The Office of Fair Trading (www.fairtrading.qld.gov.au)
   >The Queensland Government Department of Natural Resources, Mines and Energy (www.nrm.qld.gov.au/property)
   >The Building Services Authority (www.bsa.qld.gov.au)
   >The Master Builders Assocation has made a Pre-Sale Inspection Booklet available to assist when purchasing a home. (www.qmba.com.au)
   >The Housing Industry Association (www.hia.asn.au)
   >Archicentre (www.archicentre.com.au)
   >Your local council's website.

5. Examine property agent's offices, listing magazines, newspapers and property websites.

6. Approach the selling real estate agent and inspect properties making notes on each property visited. Clarify inclusions with agent (e.g. fixtures such as dishwasher - make sure everything is included in the Contract).

7. Decide on the suitability of the property and the price to be offered. Consider conducting a property sales history search to find out what the property last sold for and when, how large the property is, the recent sale prices of surrounding properties Several providers sell this information, including the Department of Natural Resources, Mines and Energy (by phoning 07 3405 6900 or logging on to www.nrm.qld.gov.au/property), Australian Business Research www.abr.com.au, and CITEC at www.confirm.com.au. Each provider has their own rates and value-added services so shop around before buying.

8. Get an independent valuation by a professional. Call the Australian Property Institute on 07 3832 3139 for a list of licensed valuers.

9. Obtain from the selling agent a PAMD Form 27c Disclosure to Buyer.

10. Obtain from the selling agent the REIQ/Qld Law Society Contract of Sale with a PAMD Form 30c Warning Statement attached (which outlines your 5-business day cooling off period). Obtain legal advice on whether to consider waiving the cooling-off period.
    
    The Warning Statement:
    
    *Informs the buyer whether a cooling-off period applies;
    *Advises buyers of their rights under the contract, including when the cooling-off period starts and ends;
    *Advises buyers to seek independent legal advice and a valuation before signing a contract and provides contact details on how to do that;
    *Informs buyers that a percentage of deposit (0.25% of the purchase price) will not be refunded upon termination of the contract during the cooling-off period;
    *Provides special warnings with regard to house and land packages;
    Contracts that are entered into which do not have a Warning Statement, or contain a Statement that is not in the approved form, will be of "no effect".

11. Put in an offer and sign a Contract of Sale noting Special Conditions making the Contract subject to building and pest inspections, as well as finance if required.

12. Pay a deposit to the selling agent and receive a trust account receipt. Some buyers may choose to use deposit bonds which act as a substitute for the cash deposit between signing a contract and settlement of the property. At settlement the buyer is required to pay the full purchase price including the deposit. Acceptance of the bond in lieu of a cash deposit is at the discretion of the seller.

13. Agent to submit the Contract of Sale to the seller.

14. If they did not waive this right through a PAMD Form 32a Lawyers Certification a buyer may terminate the Contract under the cooling off provision within 5-business days of signing the Contract. Penalties do apply.

15. You will need a solicitor to do your conveyancing. Solicitors can also help you with other services such as title searches. Solicitor's fees are negotiable - it is advisable to compare the fees being charged by a few different solicitors. Good referrals and past experience are valuable when choosing your legal representative. It is possible for a buyer to undertake these activities on their own. However, the REIQ strongly recommends using qualified solicitors for conveyancing. Contact the Queensland Law Society for further details about how to contact a qualified solicitor.

16. During the conveyancing process your solicitor will make the following checks on the property:
    
    * Applications and permits
    * Details of development approval permits previously approved
    * Notices, orders, requisitions or certificates issued in previous years
    * Land liable to flooding
    * Ownership and real property details
    * Sewerage mains, maintenance holes and property connection locations
    * Sewerage and septic tank installation/plan details
    * Water main locations
    * Existence of easements on the property.

17. If your Contract of Sale is subject to a Pest & Building Inspection, ensure you carry it out within the specified timeframe. The building inspection report should cover issues such as the soundness of structures; the legality of existing structures on the property; existence of termites, etc. Building and pest inspection reports must be from licensed professionals. The cost of these can vary. It is now required under Queensland law that the Inspector must be licensed by the Building Services Authority and you can verify this by logging on to www.bsa.qld.gov.au.

18. If there are no problems with the property and finance is approved, prepare to own your new home.

Once the Contract is unconditional, keep in touch with your solicitor with regard to any issues approaching the settlement date.
 

The REIQ Standard House and Land Contract has been prepared in accordance with relevant legislation and in conjunction with the Queensland Law Society . It is commonly used among real estate agents around Queensland and is available for purchase at Law Stationers, 279 Chapel Hill Road, Chapel Hill QLD 4069.

Buying as an investment

As half-a-million property investors around Australia will tell you, buying an investment property involves much forward planning, not unlike the purchase of a family home. But while the decision to buy a family home is usually very emotive, buying investment property should be based on a logical and calculated process.

Investors have to remember that where as a family home is a purchase from the heart an investment property is very much a purchase from the head.

To minimise the risk of getting stuck with a bad investment the REIQ recommends buyers do their homework and research the area they intend investing in. The REIQ recommends investors:

Check the local newspapers

Find properties with similar features and compare their prices. There will of course be some homes that are worth more than others because of certain attributes, such as a view. But this simple research should prove a valuable guide to determining what is on the market, and at what price.

Talk to a real estate agent in the area

A good agent should be able to provide buyers with informed opinion on prices and market trends. They should also be aware of the property types that tenants are looking for and how much particular types of property should return in rent.

Contact the Local Council and Main Roads Department

It is also recommended that potential investors contact the local Council and Main Roads Department to determine whether they are planning any major developments in the area.

Your perfect investment may soon not be so perfect when you find out a freeway overpass is being planned for your back yard.

In many cases a solicitor should be able to supply you with a list of all the searches necessary for prudent purchase. However, it is worthwhile asking for an extensive list of searches and picking out the appropriate ones for your purchase as solicitors will act only upon your instruction.

Research the Body Corporate (if applicable)

If you're investing in a unit or townhouse or any lot in a community title scheme, it may be worthwhile getting a reputable search agent to obtain and appraise the Body Corporate records. A search agent will provide you with a comprehensive written report on the state of affairs of the building, allowing you to make an informed decision to purchase.

Seek financial advice

Seeking the advice of your accountant, financial adviser and bank is also a good tip. Each will assess your investment according to different criteria and together will provide a broad picture of the financial feasibility of your investment.

Even if you're a first time investor, property investment should be considered and managed as part of an investment portfolio and, unless you're a seasoned property investor, independent advice can prove invaluable.

Like any other investment, you need to consider how much you can invest, what the goal of the investment is and how long you want to hold the investment. For a good return on property, buyers should be looking towards the medium to long term (5 to 10 years).

Re-evaluate regularly

Another important factor to take into consideration is to remember, like any investment, property and the market conditions affecting it, must be monitored and re-evaluated on a regular basis.

While there are many avenues of investment in today's marketplace, a well-researched investment in property is still, and always will be, a stable and financially rewarding investment.

Not only does a buyer need to know what price they can expect to pay but they also need to be aware of what sort of return they can expect from their investment. Making sure you buy the right property makes it not only easier to rent out, but makes it easier to sell when the need arises.

For foreign investors

Foreign investors will also need to be aware of the Australian Federal Government's Foreign Investment Policy.

The Foreign Investment Review Board (FIRB) and the Real Estate Institute of Australia (REIA) have prepared a summary of Australia's Foreign Investment Policy as it relates to acquisitions of residential real estate in Australia by foreign interests.

The policy covers developed residential real estate, residential real estate for development and off-the-plan purchases. A copy of the summary is availableby selecting the link below:

Foreign Investment Policy - Summary for residential real estate

Previous Changes

The Federal Government implemented changes to the Foreign Investment Review Board regulations for foreign investment in Australian real estate, on 10 September 1999. The following is a summary.

• Increase the notification threshold for foreign investment in existing businesses from $5 million ($3 million for rural businesses) to $50 million;

• Remove foreign investment approval requirements for individuals, who hold or are entitled to hold a special category visa and invest in Australian residential real estate through Australian companies and trusts;and

• Increase the limit for which applications for investment in businesses are registered but are generally not fully examined from $50 million to $100 million.

Vacant land and house packages

Acquisitions of residential real estate (including vacant building allotments and house and land packages where construction has not commenced) for development by foreign interests are normally approved subject to a specific condition requiring continuous construction to commence within 12 months; once construction is completed, parties are required to provide the completion date and actual development expenditure. To be eligible for approval under this category it is expected that a minimum of fifty per cent of the acquisition cost or current market value (whichever is higher) be spent on development.

Non-residential commercial properties

Where properties are not subject to heritage listing, the notification threshold applying to the acquisition of developed non-residential (ie, it is not an accommodation facility) commercial properties will be raised from $5 million to $50 million.

In addition, acquisitions of developed non-residential commercial properties, valued between the notification threshold and $100 million, will no longer be subject to detailed examination, unless the facts of the proposal raise issues pertaining to the national interest.

Integrated Tourism Resorts

The policy of designating Integrated Tourism Resorts (ITRs), within which foreign persons are permitted to acquire residential property without restriction, will only apply to developed residential property leased back to the resort operator to be available for tourist accommodation when not occupied by the owner. Owners of residential property in existing ITRs will retain their current entitlements.

Strata titled hotel accommodation

Sales will be permitted to foreign interests of strata-titled hotel rooms in designated hotels where each room is subject to a long-term (10 years or more) hotel management agreement. The hotel management agreement must limit the owners' rights to an income stream, not occupancy. The management must retain ownership of the common property. In addition, owners will not have the right to opt out of the management agreement. The hotel must provide a full range of facilities consistent with industry accepted hotel features.

Australian citizens and foreign spouses

Australian citizens and their foreign spouses purchasing as joint tenants will no longer be required to seek approval for purchases of residential property in Australia.

Foreign trustees acquisition of interests in urban land

Exemption will be given for the acquisition of interests in Australian urban land by foreign-owned responsible entities acting on behalf of managed unit trusts and other managed public investment schemes registered under Chapter 5C of the Corporations Law, where they are investing for the benefit of fund investors or unit holders ordinarily resident in Australia. This is consistent with the rules applying to foreign-owned life insurers and superannuation funds.

Commercial Property - Buying/Selling/Leasing

Many Queensland commercial and industrial real estate agents are members of the REIQ. As members, these agents have access to current training and professional development through the Institute and are also bound by strict Standards of Business Practice.

Commercial real estate is typically retail shops and offices while industrial real estate generally refers to factories and warehouses. The term "commercial real estate" is generally accepted these days as covering industrial as well as commercial real estate.

1. What are the fees and commission rates charged by commercial agents in Qld?

Fees are not regulated and are therefore negotiable. Any successful investor will tell you that if you choose the right agent they are worth far more than the fees they charge. Never choose an agent on the fee structure alone. The final result is where the money is made not through negotiating lower fees.

2. Why should I have my commercial and industrial property managed by a specialist agent, surely anybody can collect the rent?

Collecting the rent is only part of the job. When you engage a specialist agent to manage your commercial and industrial property they do just that - they manage your property. Management means more than just collecting the rent. It involves:

• Advising on acceptable lease structures so that your investment not only retains its value but also has growth built in wherever possible.

• Negotiating lease terms with the tenant to obtain results that ensure that the value of your property is enhanced by the lease and not restricted or worse - devalued.

• Dealing with your tenant in an expert manner regarding queries and problems that inevitably arise from time to time with the property and/or tenancy - these negotiations should only be handled by professionals to achieve the best outcome.

• Ensuring the property is maintained.

• Advising the owners on rental and sale values and generally keeping them informed of market trends.

• The future value of your property is dependent in part by the quality of it's management - to take chances with a non specialist is unwise and likely to result in rough running for your investment and lower returns.

3. What if I need information about Stamp Duty rates in Queensland?

The best place to refer the issue to is the Queensland Office of State Revenue - For more information about Stamp Duty, go the State Government's website at www.osr.qld.gov.au or phone 07 3227 8733 or 1300 301 342.

4. If I have GST-related questions regarding supply of a going concern or GST on rent, where should I go for advice?

The only source of definitive information on these topics is the Australian Tax Office. Contact details are included on their website at: www.ato.gov.au

5. What if any were the effects of the Property Agents & Motor Dealers Act 2000 on Queensland commercial real estate?

Whereas there is now a 5-business day cooling off period on all Queensland residential property transactions, this does not apply to commercial property transactions.

The impacts on commercial real estate agents who deal in business brokerage, hotel brokerage, commercial and industrial sales and leasing from the introduction of the Property Agents and Motor Dealers Act on July 1, 2001, are minimal but do include the following:

• Electronic Fund Transfers permitted for trust account transactions;

• Audit period extended and enlarged range of "qualified" auditors to do audits of trust accounts;

• Mandatory codes of conduct for all real estate agents, including a requirement to put in place a dispute resolution process;

• Mandatory requirement for an Appointment of Real Estate Agent (Sales and Purchases) PAMD Form 22a.

Where in the past, multiple sales of land or buildings used for residential purposes being sold on behalf of a single owner were defined as commercial property, under the new Act they will be regarded as residential. For those commercial real estate agents who are involved in property project marketing and sales of property developers' stock the impacts include:

• Warning statements as front page of all contracts of sale of residential property;

• Where unsolicited invitations to attend a property information session that result in a sales contract, that contract must be subject to a 5 business day cooling off period;

• False representation and misleading statements about property have been strengthened to include representations about the value of the property, previous history of the property, tax advantages of purchasing the property or the income earning potential of the property;

• A 60 day limit on sole and exclusive agency on residential property will apply. This sole or exclusive agency is renewable, but not more than 14 days prior to the expiry of the previous agreement;

• Maximum rates of commissions on residential property sales remain regulated.

The Office of Fair Trading has recognised that the definition of "residential property" has impacted on agency requirements to comply with sole/exclusive agency limitations and limits on the maximum commissions, which can be charged for the sale of residential property - even property developer's stock. Further policy and legislative development will be undertaken with a view to providing the Minister with options for amendment of the provisions relating to sole/exclusive agency and the regulation of commissions.

BUYING FAQ's

Does GST apply to the price of an existing residential property?
No. GST will not generally apply to the purchase price of residential properties that are not new (whether for investment or owner occupation), where the property is occupied as a residence.

Does GST apply to the price of newly constructed residential property?
GST will apply to the cost of new residential property purchased directly from a developer and it will be included in the price for the construction of a new home. The application of the "margin scheme" may significantly reduce the GST payable.

Will GST apply to the sale of vacant residential land?
GST will apply to the sale of vacant residential land notwithstanding that it may have been sold previously, if the entity selling the land is registered or required to be registered for GST, the supply is made in the course or furtherance of the entity's enterprises, the entity makes the supply for consideration and the supply is connected with Australia (s9-5 GST Act). However, the parties to the sale of the land may consider the application of the margin scheme to reduce the amount of GST payable on the sale.

Is stamp duty still payable on the purchase price of property?
Yes. Stamp duty is still payable on the purchase price of a property. If the price of the property includes GST (such as in new residential premises) then stamp duty is payable on the GST inclusive price.

First Home Owners Grant

To offset the impact of the GST the State and Territories will assist first home buyers to the tune of $7000 through the administration of a uniform First Home Owners Grant (FHOG). The Grant, administered in Queensland by the Office of State Revenue, commenced on 1 July 2000 and applies to people who are buying or building their first home.

On 9 March 2001, the Government announced an increase to the grant available under the First Home Owners Grant from $7,000 to $14,000 for those first home buyers who sign a contract to build a new home or to buy a previously unoccupied new home on or after 9 March 2001.

The measure is a short-term one, and the Grant has since changed to $10,000 for new home contracts entered into between 1 January 2002 and 30 June 2002. The grant remains at $7,000 for first home buyers who purchase existing homes.

Details of the First Home Owners Grant for new homes

Eligibility

Applicants are eligible if:

• They are buying/building their first property as a person, not as a company or trust;

• They, or a joint applicant are an Australian Citizen or permanent resident;

• They or their spouse have not previously owned an interest in land in Australia that had a residence on it prior to July 1 2000.

If the applicant has been married or living in a de facto relationship for more than two years, neither they nor their spouse can have owned a home, individually or with any other person.

What type of property is eligible?

It does not matter is the applicant is building a new home or purchasing an established home. The home can be a house, unit, flat or any other type of self-contained, fixed dwelling that meets local planning standards.

The transaction is eligible if:

• The contract to buy a home in Queensland is made on or after 1 July 2000; or

• The owners of the land in Queensland makes a comprehensive building contract on or after 1 July 2000 to have a home built; or

• An owner builder starts building a home in Queensland on or after 1 July 2000.

When is the grant payable?

The grant is paid:

• For the purchase of a home - when the title is registered in the purchaser's name; or

• For the construction of a home - when the building is ready for occupation as a home.

It is important to note that all applicants must occupy the home as their principal place of residence within one year of this event.

For more detailed information visit the Office of State Revenue's First Home Buyers web site at www.osr.qld.gov.au or email FirstHomeOwnerGrant@osr.treasury.qld.gov.au.

For more information, please refer to the REIQ website